5 min read

Crypto Exchanges& Regulation in Vietnam

Top exchanges in Vietnam by Coincub criteria
Article review author
Jonathan Lea
Vietnam head image

Crypto Country Rating: 6.4/10

6/10
Institutional acceptance
Booming cryptoeconomy -but government ban on spending bitcoin on goods and services
8/10
Exchanges & Wallets availability
All exchanges wallets available but track record of frauds clouding outlook
6/10
Government regulation
Negative legislative framework - government in the throws of creating more positive regulation
5/10
Defi acceptance
Not on the menu
6/10
Financial services
Institutions instructed not to participate in tcrypto transaction servcies
6/10
Transparency
Little governance or protection for investors
6/10
Spending crypto
Previous booming cryptoeconomy now banned from spending
6/10
Banks activity in crypto
Little involvement in providing crypto facilities.

Bitcoin and crypto trading in Vietnam

Spend Bitcoin and cryptocurrency trading in Vietnam

The crypto economy in Vietnam has been booming, along with other Asian countries whose populations have taken crypto to heart. In Vietnam, using cryptocurrencies to make purchases is illegal, but they are still actively bought, putting Vietnam high on the list of countries with a significant number of people holding it as an investment. Finding places to spend it, therefore, is not easy and despite the government’s recent volte-face and its recent initiatives centred on studying and trialing crypto currency, crypto is not legal tender.

Law and crypto trading in Vietnam

Vietnam’s government has moved from a position of opposition to acceptance of cryptocurrency – at least theoretically – perhaps bowing to huge demand for crypto by its population. The central bank is piloting a cryptocurrency implementation program in order to explore the pros and cons of virtual assets in order to better legislate for and regulate them. The country appears to be comfortable with increasing the volume of cashless payments and sees this form of usage as an irreversible trend, especially for users who may not have bank accounts.

Paying tax on my crypto trading in Vietnam

Vietnamese pay tax just like anybody else, and there are many complex classifications. But with crypto not considered an asset, taxing it creates problems. Defining crypto and regulating it over the numerous exchanges now operating in the country is the aim – without suppressing new business opportunities for entrepreneurs. The long-term benefit to the country of clear regulation is, of course, reaping taxation through the trade of cryptocurrency. Exchanges previously trading tax-free, may fall within the scope of corporate or personal income tax so for many resident crypto investors it’s very much ‘watch this space’ time.

Tax relief, changing residency and gifting crypto coins in Vietnam

As we mentioned elsewhere, tax relief doesn’t really come into it as there are no clear taxation laws applying to crypto in Vietnam. Buying, selling, holding and investing is legal, but purchasing services and products is not.

Vietnam crypto mining regulations

Thinking of mining crypto? It’s a highly technical and expensive activity at the best of times. In Vietnam, formerly a major centre for mining bitcoins, the recent rise of Bitcoin’s price has perked up the mining boom in the country. The need for vast amounts of energy to perpetuate crypto mining, and the cost of equipment to do it, apparently is outweighed by the sharp price increases. In this still unregulated country, mining has yet to see specific laws to monitor and legislate for it.

Planning your retirement and investing in cryptocurrency in Vietnam

To date, cryptocurrencies such as Bitcoin are not excluded from investment in Vietnam so it’s feasible that the investment industry will also include retirement planning. Most institutions will steer clear due to price volatility, but any investment plan would probably carry higher fees due to the higher risks involved.

Vietnam’s financial services’ outlook on Bitcoin and crypto economy

A huge crypto research programme is under way in Vietnam after Vietnam’s Ministry of Finance initiated an in-depth study of cryptocurrencies, with a view to achieving legislative reform for the industry. With much about crypto still illegal – such as buying products and services with it – it is no surprise that the financial establishment is looking for guidance. However, as yet the conclusions to the study and any proposals and recommendations are not forthcoming. We hate to say it again but….’watch this space’.

Vietnam and DeFi, the latest developments

Vietnam has long held a negative view of crypto but is changing rapidly. The government has decided it cannot ignore blockchain technology and the cryptocurrency mining and trading frenzy that has taken off during the coronavirus pandemic as people out of work or stuck at home seek new sources of income. The government is looking at ways to harness the trend towards digital assets and regulate the new technology rather than leave it to decentralized software and private enterprise. Needless to say, Decentralised Finance (DeFi) is something of a non-starter and there appears to be little debate on its merits or otherwise.

Crypto security, transparency and compliance in Vietnam

The haphazard and largely unregulated way Vietnam has grown to be a major crypto country has been responsible for the larger than average number of spectacular frauds and illegal activities through unregulated exchanges. The crypto economy is crying out for regulation that ensures the safety and security of the cryptocurrency market and the existing and potential investors of cryptocurrencies — even if some investors are warned away due to increased scrutiny.

Helpful?
FAQ

New to crypto? Here’s our guide!

FAQ Image #1 01 Why Bitcoin? It seems like the buzz around Bitcoin just keeps growing. Bitcoin is a constantly evolving technology with a passionate community. What is it about the digital asset that makes it such a controversial topic and attractive investment?
FAQ Image #2 02 How to Get Started with Bitcoin It can be difficult to get past the technical jargon surrounding bitcoin (BTC) and other cryptocurrencies in order to figure out how you can buy and store them. Beginners can purchase Bitcoin, for example, on many exchanges using fiat currency like U.S. Dollar, Euro or British Pound.
FAQ Image #3 03 Blockchains 101 Blockchains are a type of database where data is stored in blocks that are chained together. As new data comes in, it is entered into a block, which is then chained to the previous block. The Bitcoin blockchain serves as a ledger that records every Bitcoin transaction in history.
FAQ Image #4 04 Bitcoin in the Real World Ok - you’ve found an exchange, bought your Bitcoin, and stored it safely. What’s next? By now you can buy just about anything with Bitcoin if you try hard enough, from Amazon gift cards to an old master painting. You can also convert your BTC to fiat with ATMs, an exchange, and more.

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